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HomeMy WebLinkAbout20251202Post Hearing Brief.pdf CHRIS BURDIN DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0314 IDAHO BAR NO. 9810 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-44 APPROVAL OF SPECIAL CONTRACT AND ) TARIFF SCHEDULE 28 TO PROVIDE ) COMMISSION STAFF'S POST- ELECTRIC SERVICE TO MICRON IDAHO ) HEARING BRIEF SEMICONDUCTOR MANUFACTURING ) (TRITON)LLC ) COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its Attorney of record, Chris Burdin, Deputy Attorney General, submits the following post-hearing brief. BACKGROUND On December 6, 2024, Idaho Power Company ("Company") filed an application ("Application") with the Idaho Public Utilities Commission ("Commission") requesting an order approving the Special Contract for electric service between the Company and Micron Idaho Semiconductor Manufacturing (Triton) LLC ("Micron"), for Micron's new memory manufacturing fabrication complex ("Micron FAB"), and approving the rates proposed in tariff Schedule 28. On January 27, 2025, the Commission issued a Notice of Application and Notice of Modified Procedure establishing a March 12, 2025, initial comment deadline, and a March 26, COMMISSION STAFF'S POST-HEARING BRIEF 1 DECEMBER 2, 2025 2025,reply comment deadline. Order No. 36446. The Commission granted intervention to Micron Technology, Inc. the Idaho Irrigation Pumpers Association, Inc. ("IIPA"), and the Industrial Customers of Idaho Power("ICIP"). Order Nos. 36460, 36479, 36483. On February 20, 2025, IIPA filed an Objection to Modified Procedure, Demand for Hearing, and Motion to Consolidate for Hearing with Interrelated Cases ("Motion"). IIPA requested oral argument on the Motion. After hearing oral arguments, on April 15, 2025, the Commission issued Order No. 36547 granting in part and denying in part IIPA's Motion. On July 15, 2025, the Commission issued a Notice of Schedule and Notice of Technical Hearing. Order No. 36689. On October 28, 2025, the Commission held a Technical Hearing. On November 20,2025,the Commission issued a Notice of Briefing Schedule and Notice of Deadline to Request Intervenor Funding. Order No. 36853. STAFF POSITION After participating in the October 28,2025,technical hearing, and reviewing the submitted materials from all parties, Staff continues to recommend that the Commission approve the proposed Special Contract contingent on modifications to the contract terms related to: (1) the Marginal Cost-Based Energy Charges; and(2) the Minimum Monthly Billing Demand, as outline in Staff s submitted testimony. Staff also recommends that the Commission approve the Company's proposed method for determining the Marginal Cost-Based Energy Charge and the proposed method for determining the Demand Charges, and order the Company to update the Energy Charge and Demand Charges included in the proposed Schedule 28 tariff through a compliance filing. Staff recommends that the Commission approve the PCA accounting treatment proposed in the Application.Additionally, Staff continues to recommend that the Company isolate the effect of new special contract customers when cost allocation and rates need to be set for these customers in future general rate cases. Staff believes the Company should develop methods to ensure other customers are not harmed by the inclusion of new large loads onto the system. Due to the magnitude of risk associated with the Micron Fab contract, Staff supports any additional steps or conditions to minimize risk to other customers, and Staff believes it is up to the COMMISSION STAFF'S POST-HEARING BRIEF 2 DECEMBER 2, 2025 Commission to determine what is fair and reasonable for each risk mitigation item. Staff believes the risk mitigation items in the contract should at a minimum: allow changes to the marginal cost method with justification; allow rate components to change and the methods for determining the rate components to change; include extended take or pay provisions providing that any changes to the reduction of minimums be justified; include termination payments and any additional protections for termination payments; and allow changes to embedded energy rates with justification. Respectfully submitted this 2nd day of December, 2025. _L ,��,A Chris Burdin Deputy Attorney General IALegahELECTRIC\IPC-E-24-44_Triton\IPCE2444_Staff PHB_cb.docx COMMISSION STAFF'S POST-HEARING BRIEF 3 DECEMBER 2, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 2ND DAY OF DECEMBER 2025, SERVED THE FOREGOING COMMISSION STAFF'S POST-HEARING BRIEF,IN CASE NO. IPC-E-24-44,BY E- MAILING A COPY THEREOF,TO THE FOLLOWING: MEGAN GOICOECHEA ALLEN CONNIE ASCHENBRENNER DONOVAN E.WALKER GRANT ANDERSON IDAHO POWER COMPANY IDAHO POWER COMPANY PO BOX 70 PO BOX 70 BOISE ID 83707-0070 BOISE ID 83707-0070 maoicoecheaallengidahopower.com caschenbrenner(&idahopower.com dwalker(a)idahopower.com ganderson(a6dahopower.com dockets(&idahopower.com Micron Micron AUSTIN RUESCHHOFF AUSTIN W JENSEN THORVALD A NELSON KRISTINE A.K.ROACH HOLLAND&HART LLP HOLLAND&HART LLP 555 17TH ST STE 3200 555 17TH ST STE 3200 DENVER CO 80202 DENVER CO 80202 darueschhoff(a)hollandhart.com awjensen a,hollandhart.com tnelson@hollandhart.com karoach@hollandhart.com aclee@hollandhart.com Idaho Irrigation Pumpers Assn,Inc. Idaho Irrigation Pumpers Ass'n,Inc. Eric L. Olsen Lance Kaufman,Ph.D. Echo Hawk&Olsen,PLLC 2623 NW Bluebell Place P.O.Box 6119 Corvallis,OR 97330 505 Pershing Ave., Ste. 100 lance(&aegisinsi h Pocatello,ID 83205 elo(a)echohawk.com Industrial Customers ofldaho Power Industrial Customers ofldaho Power Peter J.Richardson Dr.Don Reading Richardson Adams,PLLC 280 S. Silverwood Way 515 N.27t'St. Eagle,ID 83716 Boise,ID 83702 dreading&a,mindsprin_ com peter@richardsonadams.com Clean Energy Opportunities for Idaho Clean Energy Opportunities for Idaho Kelsey Jae Courtney White 920 N. Clover Dr. Mike Heckler Boise,ID 83703 Clean Energy Opportunities for Idaho kelsey(&kelseyjae.com 3778 Plantation River Dr., Ste. 102 Boise,ID 83703 courtneygcleanenergyopportunities.com mikekcleanenergyopportunities.com Keri J. H wker Legal Administrative Assistant COMMISSION STAFF'S POST-HEARING BRIEF 4 DECEMBER 2, 2025